Business leader Arif Habib has firmly rejected social media claims suggesting that Pakistan International Airlines (PIA) was sold at a very low price during privatization. His clarification comes after the Arif Habib Group-led consortium acquired a 75 percent stake in the national airline for Rs 135 billion.
Following the announcement, critics on social media argued that the amount paid was equal to the price of just one or two large aircraft, questioning the fairness of the deal. Addressing these concerns, Arif Habib explained that such comparisons ignore PIA’s actual financial position.
“If you examine PIA’s balance sheet, its book value is zero, meaning it has no equity. Its liabilities are equal to its assets,” he said. He clarified that the airline’s accumulated losses have wiped out its capital over time.
Habib further explained that while PIA does own certain properties, their values have already been adjusted to current market rates. According to him, the airline’s net asset value is around Rs 25 billion, mainly due to deferred tax assets. “PIA’s liabilities stand at around Rs 190 billion, while its assets total about Rs 180 billion,” he added.
He also addressed concerns about future operations, especially regarding loss-making routes. “We will certainly close unprofitable routes; otherwise, the capital will be depleted, and the company will face another crisis,” Habib stated.
Industry experts say the clarification highlights the complexity of PIA’s financial challenges and explains why valuation based on aircraft prices alone is misleading. The new management believes tough decisions and restructuring are necessary to prevent further losses and put the airline on a sustainable path.
